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Collusion in the Dutch waste collection market

Author

Listed:
  • E. Dijkgraaf

    (Erasmus University Rotterdam, ECRi, SEOR)

  • R. H. J. M. Gradus

    (Erasmus University Rotterdam, Vrije Universiteit Amsterdam)

Abstract

In this paper we analyse whether collusion exists in the Dutch waste collection market, which shows a high degree of concentration. Although scale effects might be in accordance with this market outcome, the question is whether this concentration is in fact a result of fair competition. Using data for (nearly) all Dutch municipalities we estimate whether collusion exists and what the impact is on tariffs for waste collection. The results indicate that high concentration increases prices and therefore (partly) offsets the advantage of contracting out. The presence of competing public firms might be essential to ensure more and fair competition.

Suggested Citation

  • E. Dijkgraaf & R. H. J. M. Gradus, 2005. "Collusion in the Dutch waste collection market," Industrial Organization 0502006, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0502006
    Note: Type of Document - pdf; pages: 25
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/io/papers/0502/0502006.pdf
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    Citations

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    Cited by:

    1. Stefano Colombo, 2016. "Mixed oligopolies and collusion," Journal of Economics, Springer, vol. 118(2), pages 167-184, June.
    2. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2014. "The Costs of Disposal and Recycling: An Application to Italian Municipal Solid Waste Services," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 896-909, May.
    3. Mildred E. Warner, 2012. "Does Local Government Size Matter? Privatization and Hybrid Systems of Local Service Delivery," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1212, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Marc Escrihuela-Villar & Carlos Gutiérrez-Hita, 2018. "A note on the privatization neutrality result with colluding private firms," Economics Bulletin, AccessEcon, vol. 38(4), pages 2016-2025.
    5. João Correia-da-Silva & Joana Pinho, 2018. "Collusion in mixed oligopolies and the coordinated effects of privatization," Journal of Economics, Springer, vol. 124(1), pages 19-55, May.
    6. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
    7. Fusco, Elisa & Allegrini, Veronica, 2020. "The role of spatial interdependence in local government cost efficiency: An application to waste Italian sector," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    8. Germà Bel & Xavier Fageda, 2008. "Privatization and competition in the delivery of local services: An empirical examination of the dual market hypothesis," Working Papers XREAP2008-04, Xarxa de Referència en Economia Aplicada (XREAP), revised Apr 2008.
    9. Germà Bel & Xavier Fageda, 2009. "Factors explaining local privatization: a meta-regression analysis," Public Choice, Springer, vol. 139(1), pages 105-119, April.
    10. E. Dijkgraaf & R.H.J.M. Gradus, 2008. "How to Get Increasing Competition in the Dutch Refuse Collection Market?," Springer Books, in: E. Dijkgraaf & R.H.J.M. Gradus (ed.), The Waste Market, chapter 0, pages 101-109, Springer.
    11. Paolo Esposito & Spiridione Lucio Dicorato & Emanuele Doronzo, 2021. "The effect of ownership on sustainable development and environmental policy in urban waste management: An explicatory empirical analysis of Italian municipal corporations," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1067-1079, February.
    12. E. Dijkgraaf & R. Gradus, 2011. "Efficiency Effects of Privatising Refuse Collection: Be careful and Alternatives present," Tinbergen Institute Discussion Papers 11-156/3, Tinbergen Institute.
    13. Marc Escrihuela-Villar & Carlos Gutiérrez-Hita, 2019. "On competition and welfare enhancing policies in a mixed oligopoly," Journal of Economics, Springer, vol. 126(3), pages 259-274, April.
    14. Xavier Fageda & Germa Bel, 2008. "Choosing hybrid organizations for local servicesdelivery: An empirical analysis of partial privatization," IREA Working Papers 200803, University of Barcelona, Research Institute of Applied Economics, revised Apr 2008.
    15. Suho Bae, 2010. "Public Versus Private Delivery Of Municipal Solid Waste Services: The Case Of North Carolina," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 414-428, July.
    16. Germà Bel & Melania Mur, 2008. "Intermunicipal cooperation and privatization of solid waste services among small municipalities in Spain," IREA Working Papers 200816, University of Barcelona, Research Institute of Applied Economics, revised Dec 2008.
    17. Mildred E. Warner, 2013. "Does local government size matter? Privatization and hybrid systems of local service delivery," Chapters, in: Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), The Challenge of Local Government Size, chapter 11, pages 263-288, Edward Elgar Publishing.
    18. Germa Bel & Xavier Fageda, 2008. "Reforming the local public sector: economics and politics in privatization of water and solid waste," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 45-65.
    19. Amir Hefetz & Mildred E Warner & Eran Vigoda-Gadot, 2012. "Privatization and Intermunicipal Contracting: The US Local Government Experience 1992–2007," Environment and Planning C, , vol. 30(4), pages 675-692, August.
    20. Brian Chi-ang Lin & Siqi Zheng & Ankinée Kirakozian, 2016. "One Without The Other? Behavioural And Incentive Policies For Household Waste Management," Journal of Economic Surveys, Wiley Blackwell, vol. 30(3), pages 526-551, July.
    21. Santiago Lago-Peñas & Jorge Martinez-Vazquez (ed.), 2013. "The Challenge of Local Government Size," Books, Edward Elgar Publishing, number 15294.

    More about this item

    Keywords

    Waste collection; collusion; public-private firms; contracting out;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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